Answer:current balance of retained earnings=$206,000
Explanation:
Net Retained Earnings = Total Income since Incorporation−
Total Cash Dividend Paid− Value of Stock Dividend distributed
Where
cash dividends distributed among the stakeholders= $55,000
value of stock dividends distributed = $31,000
Total Dividend Distributed = $86,000
Net Retained Earnings = $292,000 -($86,000)=$206,000
Short term loan is the best loan option for a neighborhood Lemonade stand because it is a small business.
<u>Explanation:</u>
Short term loan is obtained for a small business capital need. Short term loans are usually payable within an year. The interest to paid to short term loan is less compared to long-term loan.
Bank offers loan amount easily because they encourage people to do small business. In short term loan, risk is generally low and the profit is high if the business is running well.Since lemonade stand is a small business, short-term loan is the best loan option.
Answer:
the GDP is $6,850 billion
Explanation:
The computation of the GDP for this economy is as follows:
GDP = Personal consumption expenditure + Government purchases + Gross private domestic investment + Exports- imports
= $4,800 + $1,050 + $1,130 + $240 - $370
= $6,850
hence, the GDP is $6,850 billion
Answer:
A. At the current level of production, the firm is making a profit of $3,000.
Explanation:
Units produced at first scenario 1500
Units produced at second scenario 2000
$3.5 average cost
$4 marginal cost
$5 marginal revenue x 2000 units=$10.000
(-) $3.5 x 2000 units =$7.000
_____________________________________
Profit =$3000
Income effect - This is the increase or decrease in purchasing power brought on by changes in prices.
substitution effect-This refers to how people may buy a lower-priced product rather than a more expensiv product. This effect may change the demand for a good or service.
